Monetary Policy with Imperfect Signals: The Target Problem in a New Monetarist Approach
نویسندگان
چکیده
منابع مشابه
New Monetarist Economics: Understanding Unconventional Monetary Policy*
2012 The Econom doi: 10.1111/j.1475 This paper focuses on Federal Reserve policy in the United States after the financial crisis. Two key interventions – QE1 and QE2 – are reviewed, and a model is outlined that can be used to help understand some of the consequences of the financial crisis, and the policy responses to the crisis. Liquidity traps play an important role in the analysis, and it is...
متن کاملLiquidity, Monetary Policy, and the Financial Crisis: A New Monetarist Approach
A model of public and private liquidity is constructed that integrates financial intermediation theory with a New Monetarist monetary framework. Key features of the model are non-passive fiscal policy and costs of operating a currency system, which imply that an optimal policy deviates from the Friedman rule. A liquidity trap can exist in equilibrium away from the Friedman rule, and there exist...
متن کاملAppendix to “Liquidity, Monetary Policy, and the Financial Crisis: A New Monetarist Approach”
holds, then (51) holds for for ≥ and ∈ ( ()]. However (51) does not hold for 0 if (52) holds. If 0 and (52) holds then (51) holds for ∈ ( ()] If (52) does not hold, then from (51) an equilibrium of this type cannot exist for 0 If ≤ 0 and (52) does not hold, then (51) holds for ∈ ( ()] Proof of Propositions 1(ii), 2(ii), and 3(ii). In an equ...
متن کاملRobust Monetary Policy with Imperfect Knowledge
We examine the performance and robustness properties of monetary policy rules in an estimated macroeconomic model in which the economy undergoes structural change and where private agents and the central bank possess imperfect knowledge about the true structure of the economy. Private agents rely on an adaptive learning technology to form expectations and update their beliefs based on incoming ...
متن کاملLiquidity, Financial Intermediation, and Monetary Policy in a New Monetarist Model
A model of monetary exchange with private financial intermediation is constructed. Claims on financial intermedaries of two types are traded in transactions: circulating notes and deposits. There can be a role for the government in supplying liqudity, and level changes in the money supply accomplished through open market operations can be nonneutral. A Friedman rule is suboptimal, due to costs ...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2018
ISSN: 1556-5068
DOI: 10.2139/ssrn.3236893